Funding the Future Why the rich always win
Nov 5, 2025
Explore the intriguing R > G formula by Thomas Piketty, revealing why the rich keep getting richer. Unearth the generational wealth compounding and the political choices fueling inequality. Dive into the postwar years that temporarily reversed these trends and how neoliberal policies exacerbated them. Richard Murphy outlines the dangers of unchecked wealth, comparing it to cancer, while proposing bold policy changes to favor labor and curb exploitation. A call to action urges us to reclaim wealth and prevent a new feudalism in our society.
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R Greater Than G Explains Rising Inequality
- Thomas Piketty's formula R > G explains why wealth grows faster than wages and fuels inequality.
- When returns to capital exceed economic growth, owners of assets capture an increasing share of national income.
The Postwar Anomaly Where Growth Beat Returns
- The 1945–1975 period was a historical anomaly with rising wages, strong unions, high public ownership, and high wealth taxes.
- During that era, economic growth outpaced returns to capital and society shared prosperity more evenly.
Policy Reversal Drove Inequality From The 1980s
- Political choices since the 1980s reversed the postwar gains by cutting taxes on the wealthy and deregulating finance.
- These policies pushed R back above G, returning disproportionate gains to asset owners and financiers.
